Western Alliance Bancorporation, the parent company of Las Vegas-based Bank of Nevada, reported net income of $32.1 in the fourth quarter, more than quadruple the $7.1 million reported for the same period last year.
The bank holding company’s fourth quarter earnings were 22 cents a share, which met analyst expectations. Quarterly revenue of $82.5 million fell just short with analysts surveyed by Yahoo Finance expecting revenue of $89.9 million.
“The strong finish to 2012 has given us powerful momentum as we head into 2013,” said Robert Sarver, chairman and CEO of Phoenix-based Western Alliance. “Quarter after quarter, we achieved high quality loan growth, consistently funded by low-cost core deposits.”
Sarver said the company’s strong fourth quarter growth was helped by the $55 million acquisition of Western Liberty Bancorp in Las Vegas, and its subsidiaries Service 1st Bank of Nevada and Las Vegas Sunset Properties.
The Service 1st Bank acquisition, which closed in October, increased the company’s assets by $195.5 million to $6.46 billion. The deal also added $91 million in loans and $117 million in deposits. Loans increased by an additional $11 million in the fourth quarter as a result of the acquisition of Las Vegas Sunset Properties and stood at $5.71 billion as of Dec. 31.
“In 2012, our company again executed its growth strategy by reporting double-digit top line revenue growth for the third consecutive year, and growth in operating revenue as it has every year since it went public in 2005,” said Ken Vecchione, president and COO of Western Alliance. Vecchione said rising revenue, when coupled with lower credit costs and increased efficiency, has given Western Alliance “considerable leverage to drive earnings per share higher.”
Net income for Bank of Nevada was $7.8 million in the fourth quarter, compared with $1.2 million for the same period last year. The bank also posted a $122 million increase in loans and a $161 million jump in deposits during the fourth quarter.
“This growth was most due to the acquisition of Service 1st Bank,” Western Alliance said in an earnings report.
Western Alliance released its earnings Thursday evening and held a conference call with analysts on Friday.
Shares of Western Alliance jumped 6.19 percent, or 72 cents, to close at $12.36 on heavy volume of more than 1 million shares traded on the New York Stock Exchange. Western Alliance’s average daily trading volume has been 393,272 shares for the last three months.
Contact reporter Chris Sieroty at email@example.com or 702-477-3893. Follow @sierotyfeatures on Twitter